Further clarification on MSME FORM I

FURTHER CLARIFICATION ON 'MSME FORM I'

In relation to notification issued by the Ministry of Micro, Small and Medium Enterprises, dated 02nd November, 2018, MCA Introduce new Form 'MSME FORM I' Via Companies (Furnishing of information about payment to micro small enterprise suppliers) Order, 2019 Notification dated 22th Jan, 2019.

Although 'MSME FORM I' is not available on MCA portal.

1.Who shall file 'MSME FORM I'?

All Companies who has outstanding dues to Micro or small enterprises more than 45 days from the date of acceptance or the date of deemed acceptance of the goods or services.

*{Date of deemed acceptance means the date of actual delivery of goods or rendering of services, where no objection is made in writing by the buyer regarding acceptance of goods or services within fifteen days from the day of the delivery of goods or the rendering of services}

2.Who shall not file 'MSME FORM I'?

• Companies who has no outstanding dues to Micro or small enterprises
• Companies who has outstanding dues to Micro or small enterprises less than 45 days
• Not Applicable to Companies who has outstanding dues to Medium enterprises

3.Which details required to be furnished for 'MSME FORM I'?

- The amount of payment due;
- The reasons of the delay;
- PAN Number of the Company
- Particulars of supplier (Name, PAN, Amount Due, Date from which amount is due)

4. What is the due date of filing 'MSME FORM I'?

Due date for the first time filing of 'MSME FORM I' from the date of introduction of notification.

Due date for filing of further MSME FORM I'?

5. Which Companies falls under MSME

The limit for investment in plant and machinery / equipment for manufacturing /service enterprises, as notified,vide S.O. 1642(E) dtd.29-09-2006 are as under

6. Which type of entities cover under Micro and Small entities?-

Micro and Small Enterprise includes Proprietorship, Hindu Undivided Family, Partnership Firm, Company, Undertaking, an Association of Persons or Co-Operative Society.

7.If a Company falls in criteria of MSME, However not registered under MSME Act. Whether Company need to mention details of such MSME in their reporting?

As per language of Notification, our Interpretation is that only registered MSME required filing with ROC in form MSME-1

8. Whether there is any limit on amount of transaction with MSME?

No, Limit of amount doesn't matter

9. If there is an agreement between MSME registered company and other company for payment with in any days more than 45 days e.g 60 days or 75 days? Whether Specified Company need to file e-for MSME-1 after expiry of 45 days?

As per section 15 of MSME Act, 'in no case period agreed between supplier and buyer in writing shall exceed 45 days from day of acceptance.

Therefore one can opine that, agreement between supplier and buyer for payment after 45 days doesn't have any effect in filing of MSME-1. Because as per MSME Act, supplier and buyer cannot decide day more than 45 days.

10. What are the Consequences on Company if its fails to file e-form MSME-1 within 30     days of notification?

Statutory Provisions Contained Under the Act:

Section 405:  Power of Central Government to Direct Companies to Furnish Information or Statistic

(1) The Central Government may, by order, require companies generally, or any class of companies, or any company, to furnish such information or statistics with regard to their or its constitution or working, and within such time, as may be specified in the order. (4) If any company fails to comply with an order made under sub-section (1) or subsection (3), or knowingly furnishes any information or statistics which is incorrect or incomplete in any material respect, the company shall be punishable with fine which may extend to twenty-five thousand rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both.

Source link: 

http://www.mca.gov.in/Ministry/pdf/MSMESpecifiedCompanies_22012019.pdf
http://dcmsme.gov.in/publications/circulars/Notification%202.pdf